Below the breadline The Relentless Rise of Food Poverty in Britain - Niall Cooper, Sarah Purcell and Ruth Jackson
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below the breadline The Relentless Rise of Food Poverty in Britain Niall Cooper, Sarah Purcell and Ruth Jackson June 2014
Contents Acknowledgements 3 Executive Summary 4 Introduction 6 Food poverty in 2014 6 What has happened last year 9 The cumulative impact of social security reform 15 Food poverty in the devolved nations 19 The future of the social safety net 21 Conclusion 22 Appendix 23
below the breadline 3 Acknowledgements Case studies and testimonies in this report are drawn The Trussell Trust is a registered charity in England & from the work of Church Action on Poverty, The Wales (1110522) and Scotland (SC044246). Trussell Trust and Oxfam, and that of our networks This report was first published by Church Action on and partners. The experiences and perspectives of Poverty, The Trussell Trust and Oxfam under Oxfam those living in poverty are fundamental to this report. ISBN 978-1-78077-644-6 in June 2014. Our biggest thanks go to the participants, and their families, for giving their time to these projects and for Church Action on Poverty, Dale House, 35 Dale Street, sharing their lives with us. We hope this report does Manchester M1 2HF justice to their honesty and openness. Oxfam GB, Oxfam House, John Smith Drive, Cowley, Church Action on Poverty is a national ecumenical Oxford, OX4 2JY Christian social justice charity, committed to tackling The report, and other resources on food poverty, poverty in the UK. We work in partnership with are available at www.church-poverty.org.uk/ churches and with people in poverty themselves foodfuelfinance. The report, and other resources on to find solutions to poverty, locally, nationally and global poverty, are available at www.oxfam.org.uk/ globally. Further information can be found at policyandpractice. The report and further information www.churchpoverty.org.uk Registered charity number on UK foodbanks can be found at www.trusselltrust. 1079986. Company limited by guarantee, registered in org/stats England and Wales, number 3780243. This report is published under a Creative Commons Oxfam is an international confederation of 17 Licence CC-BY-NC-ND. This means that you are free to organisations networked together in more than 90 share (copy, distribute and transmit) the report, under countries as part of a global movement of people the following conditions: who share the belief that, in a world rich in resources, poverty isn’t inevitable. It’s an injustice which can, and Attribution. You must indicate that the report is must, be overcome. In the UK, we work to overcome by Church Action on Poverty and Oxfam, and can poverty by developing projects with people living in be downloaded from www.church-poverty.org. poverty to improve their lives and show how things uk/foodfuelfinance or from www.oxfam.org.uk/ can change, and working with policy makers to policyandpractice or from www.trusselltrust.org/stats tackle the causes of poverty. For more information (but not in any way that suggests that Church Action on visit www.oxfam.org.uk/uk. Oxfam is a registered Poverty, The Trussell Trust or Oxfam endorses you or charity in England and Wales (no 202918) and your use of the material). Scotland (SC039042). Oxfam GB is a member of the Non-commercial. You may not use the material for international confederation Oxfam. commercial purposes. The Trussell Trust is a Christian charity that runs a No derivative works. You may not alter, transform, or network of over 400 UK foodbanks. We partner with build upon the material. For any reuse or distribution, churches and communities to launch foodbanks across you must make clear to others the license terms of this the UK that provide three days nutritionally-balanced work. Any of the above conditions can be waived if emergency food and support to people in crisis. you get permission from Church Action on Poverty or Over 90 percent of food given out by Trussell Trust Oxfam. foodbanks is donated by the public. Every foodbank Nothing in this licence impairs or restricts the author’s recipient is referred by a frontline care professional moral rights. Your fair dealing and other rights are in such as a doctor, social worker or schools liaison no way affected by the above. officer. Our foodbanks also help people to break out of crisis long-term by working with them to find ways to address the underlying cause of the problem. The Trussell Trust’s vision is to create a nation where no-one needs to go hungry. www.trusselltrust.org/ foodbank-projects.
4 below the breadline Executive summary n The UK is the seventh richest country in the world. week. More than half a million children in the UK are It is also a deeply unequal country. In May 2014, the now living in families who are unable to provide a Office for National Statistics (ONS) reported that the minimally acceptable diet. richest one percent of Britons own the same amount n Despite their best efforts, many people cannot earn of wealth as 54 percent of the population.1 The same enough to live on. UK food prices have increased month, the Sunday Times reported that the 1,000 by 43.5 per cent in the eight years to July 2013 and richest people in the country had doubled their wealth food expenditure as a proportion of total household in five years. expenditure has continued to rise. The UK has one of nYet at the same time, millions of families across the the highest levels of housing costs in Europe, while UK are living below the breadline. Oxfam and Church between 2010 and 2013 energy prices for households Action on Poverty have calculated that 20,247,042 rose by 37 per cent. At the same time, low and stagnant meals were given to people in food poverty in 2013/14 wages, insecure and zero-hours contracts mean that by the three main food aid providers. This is a 54 for many low-income households, the money they are percent increase on 2012/13. bringing home is less every month than their essential outgoings. n Protecting its citizens from going hungry is one of the most fundamental duties of government. Most of us n Evidence shows that changes to the social security have grown up with the assumption that when we fall system are a driver of food poverty. Cuts to social on hard times, the social security safety net will kick in security since April 2013 have had a severe impact and prevent us from falling into destitution and hunger. on poor and vulnerable families across the UK. These The principle of this crucial safety net now appears to cuts have been coupled with an increasingly strict be under threat. and often misapplied sanctions regime – 58 percent of sanctions decisions are successfully challenged,2 n Food banks are a service of last resort for suggesting that many people needlessly suffer a loss people living in poverty. As the authors of a report of income through no fault of their own. The abolition commissioned by the Department for Environment, of the Social Fund has prevented thousands of Food and Rural Affairs (DEFRA) on food poverty stated: households from being able to access crisis loans. The ‘There is no evidence to support the claim that increased Trussell Trust, the largest food bank network in the UK, food aid provision is driving demand. All available estimates that 49 percent of people referred to food evidence, both in the UK and internationally, points in the banks are there due to problems with social security opposite direction. Put simply, there is more need and payments or because they have been refused a crisis informal food aid providers are trying to help.’ loan.3 n People on low incomes have traded down and down n In the last year, the All Party Parliamentary Group again to the cheapest food products; after which they (APPG) on Hunger and Food Poverty has been set simply have to buy less food. We have spoken to up with broad cross-party political support, and is people living on one meal a day, drinking hot water conducting an Inquiry into the issue. The Work and and lemon to tame hunger pangs, trying to think Pensions Select Committee has considered the link how they can survive on a household budget of £6 a between social security reforms and the increased use of food aid. These developments are welcome. 20,247,042 n However, far more needs to be done and with a greater sense of urgency. The government is failing meals were given more broadly to properly investigate or address the causes of the significant increase in food bank use. to people in While we welcome the APPG Inquiry into the issue, this should not be used as an excuse for inaction at a food poverty in wider level. All political parties must clearly commit to urgent action if we are to begin to tackle the growing 2013/14 problem of food poverty in the UK.
below the breadline 5 Recommendations All political parties should commit to re-instating the safety net principle as a core purpose of the social security system. The government should urgently commission and publish independent systematic research on the reasons for referrals to food banks and the underlying reasons behind growth in the need for food aid. This research should include an investigation of the impacts of rising living costs, low wages, insecure work, and multiple changes to the social security system and sanctions processes, and consider the differential impact on men and women. Based on the findings of this research, the government should develop and implement an action plan to address food poverty. All political parties should set out clear plans for addressing and preventing food poverty in the UK. All political parties should commit to increasing the minimum wage to the Living Wage by 2020 and set out their strategy for doing this. The government should undertake a sector-by-sector review of the use of zero-hours contracts and their impact, and take action to ensure that people who are in work are able to earn sufficient income to survive. Checks on the balance of power in zero-hours contracts must be created, and an automatic trigger identified for a permanent contract for average hours worked. The government should undertake a broad and independent review of the operation and impact of social security sanctions. Research carried out for this report indicates that sanctions are not an effective device for encouraging employment, their stated policy goal. The application of the policy is poor and inefficient, causing unnecessary hardship and hunger. Changes should be made to the current sanctions system including - removal of the right of advisers to arbitrarily suspend social security payments pending investigation. There should be a presumption towards eligibility and shorter, fixed consideration times; - review of the implementation of policies (who is sanctioned, why, appeals, why they are successful) to that ensure practice is transparent, evenly applied and fair; - addressing the performance of JCP advisers who repeatedly incorrectly sanction claimants whose sanctions are overturned on appeal. To ensure that no one who is eligible for social security is left without money, the entitlement basis for crisis loans and short-term benefit advance for those waiting for social security payments should be immediately reinstated. This should be paid through the Jobcentre Plus and not via a separate application process to the local authority.
6 below the breadline Introduction In May 2014, the Office for National Statistics (ONS) n provide the safety net when people need it; reported that the richest one percent of Britons n support people into sustainable and reasonable work; own the same amount of wealth as 54 percent of the n provide for those unable to work. population.4 The same month, the Sunday Times reported that the 1,000 richest people in the UK had ‘I thought the system would protect me. I never doubled their wealth in five years. As this elite gets thought I would be completely ignored. I feel I was richer and richer, millions of people across the UK are let down hugely. My benefits are my safety net – if living below the breadline. they’re removed how are families like ours meant to survive?’ Jane, helped by Epsom Foodbank Food poverty is one of the starkest signs of inequality in the UK, and, as the evidence in this report shows, it is increasing fast. Oxfam, Church Action on Poverty and The Trussell Trust believe that no one should go hungry in the UK today. The richest one ‘It feels like we’re going back in time. The welfare percent of Britons reforms are causing a sort of famine – because people are struggling.’ Melissa, Manchester own the same Tackling inequality and food poverty means paying amount of wealth as 54 percent of people fairly for their work. Low and stagnant wages, insecure and zero-hours contracts all mean that for the population some households the money they are bringing home is less every month than their essential outgoings. Despite their best efforts, many people cannot earn enough to live on. As this report also shows, current changes to the social security system, including a more punitive sanctions Food poverty in 2014 regime, are contributing significantly to food poverty. There is increasing scrutiny of the true picture of food Despite ambitions for reform, the Universal Credit aid provision in the UK and the number of people system has yet to be fully implemented. Meanwhile, having to access these services. Oxfam and Church the cumulative impacts of the raft of other changes Action on Poverty have calculated that 20,247,042 implemented since 2012 are the final squeeze on the meals were delivered to people in food poverty in budgets of many of the poorest households. Most of us 2013/14 by three of the main food aid providers have grown up with the assumption that when we fall (Trussell Trust, Fareshare and Food Cycle). This is a 54 on hard times, the social security safety net will kick in percent increase on 2012/13, when the same providers and prevent us from falling into destitution and hunger. distributed just over 13 million meals (see Appendix). We are deeply concerned that the principle of this The Trussell Trust is the main national food bank crucial safety net is now under threat. provider, with more than 400 food banks in the UK. The Trussell Trust alone has reported that it gave ‘Without welfare reforms, many people at the out three days’ emergency food to 913,138 people bottom would have been pushed into using food between April 2013 and March 2014, of whom 330,205 banks, although the cuts in benefit that are now were children.6 This is a 163 percent increase on the occurring can have only increased this pace.’ previous year, when the Trussell Trust gave three days’ Frank Field MP, Chair APPG on Hunger & Food food to 346,992 people. Poverty5 The Trussell Trust statistics are the most robust Oxfam, Church Action on Poverty and The Trussell nationally collected statistics on food bank use and Trust support reform of the social security system and therefore provide the best available data on the believe that there needs to be a radical vision for social number of people accessing food banks across the security that is fit for the twenty-first century. It must: UK. However, the Trussell Trust is far from the only
below the breadline 7 Case study Tracy lives in Ilford, Essex with her partner and baby daughter. Her partner is a teaching assistant; Tracy has been in and out of low-paid work since leaving school at 16. She also suffers from long-term depression and is currently on ESA (Employment Support Allowance). Tracy and her baby daughter came to Tower Hamlets Food Bank after being referred by her daughter’s social worker. Tracy’s partner is only paid during term-time, but their social security payments are paid at the same rate throughout the year. This means that during school holidays the couple receive just £6 insocial security payments, which is their total weekly income. ‘You don’t manage on £6 a week. We have had to borrow off friends and family.’ In addition, budget cuts have meant that her partner’s hours were slashed from 13 to seven a week. ‘Before my maternity pay we used to have just half a meal a day. We’d shop at Iceland. We don’t get frozen ready meals as they’re expensive but they do have like eight chicken breasts for £2. We’d have one of them each and maybe some chips and that would be all we’d eat for the day. And we’d just drink water, and occasionally have tea or coffee.’ Tracy was concerned about the quality of their food, but felt she had no choice. ‘Meat is so expensive these days. When I was growing up we’d only have fish fingers or something once or twice a week, and proper food the rest of the time, now it’s the other way around. We only have proper meat once a month now.’ ‘I’m disappointed I’ve had to use a food bank as you want to be able to survive on your own, but at least there are people out there who help, that is nice.’ food aid provider in the country; there is an extensive network of other charities and independent providers in operation. For example, in Tameside, Greater Manchester, there are two Trussell Trust food banks and 13 independent food banks. Sheffield’s food bank network lists nine food banks, three of which are Trussell Trust and six independent. Meanwhile, in Dundee, the Trussell Trust provides two-thirds of the food parcel provision, whereas in Inverness it is the only provider of food parcels.7 This patchwork of providers demonstrates the determination of communities across the UK to prevent people from going hungry. However, it also means the Trussell Trust’s statistics on their own cannot account for the total number of people receiving food aid. The true scale of food poverty is under-reported. It is very difficult to tackle a problem without understanding its true scale. In 2013, in the report Walking the Breadline, Oxfam and Church Action on Poverty recommended that ‘all referrals to food banks/emergency food aid provision made by government agencies, be recorded and monitored in order to establish more accurate numbers on people experiencing food poverty in the UK.’8
8 below the breadline In January 2014, the Work and Pensions Select system and sanctions processes. It should also Committee published a report following its inquiry encompass a gender analysis to reflect the differential into the role of Jobcentre Plus in the reformed social impact on men and women. From the findings of this security system. The report considered, among other research, the government must implement an action things, the link between sanctions and food aid. The plan to begin to address food poverty. inquiry heard evidence from Oxfam, The Trussell Trust and Church Action on Poverty that the increased Impacts of food poverty on numbers of people using food banks were in part due to the increased numbers of sanctions given women and children out.9 The report recommended that the Department Food poverty, as with all poverty, affects women and for Work & Pensions (DWP) take urgent steps to men differently. Many women will go hungry in order monitor the extent of financial hardship caused by to feed their children,11 whether they have a partner or benefit sanctions, including by collecting, collating not, and it is women who tend to provide the majority of and publishing data on the number of claimants childcare. Lone parents, 89 percent of whom are women,12 ‘signposted’ to food aid by Jobcentres and the reasons are twice as likely to live in poverty as couple families.13 for claimants’ need for assistance in these cases.’10 ‘I started my own shop... In January Phoebe my daughter was taken seriously ill and I ended up More than half a taking nearly all of January off and so the shop had to close, so I had nothing coming in. I literally million children had nothing when I came back from the hospital, everything had gone off that was in the house and in the UK are there was no money in the bank account. I had to raid her penny jar so we could have some milk.’ now living in Holly, Chichester families who are Because women take time off work for maternity leave, it is often their partners who become the breadwinners. Women may find it hard to return to work, have unable to provide difficulty in obtaining hours to fit around childcare and sufficient flexibility to allow for emergency care. This is a minimally especially true for lone parents. acceptable diet. ‘It was freezing cold, there was no wood for the fire. I was on the emergency on the meter and I knew the lights were about to go out, and I had no food. I had no money to get my children to school which However, the government rejected the costs £35-£40 a week. I was desperate.’ recommendations of the Select Committee report. Jane, mother of four sons, Epsom Oxfam, The Trussell Trust and Church Action on Poverty fully support the recommendation of the The number of children in the UK living in poverty Work and Pensions Select Committee that this data increased by 300,000 over the year to April 2012,14 be collected and monitored, but further to this, we and 66 percent of children in poverty are in families believe that systematic research is needed into what where at least one parent works.15 More than half a is driving the growth in food bank referrals not just million children in the UK are now living in families who from Jobcentres, but from the statutory and voluntary are unable to provide a minimally acceptable diet.16 sectors as a whole. Indeed, as food poverty is growing, Kellogg’s have responded to the situation by helping we believe that the government must commission to set up more than 1,000 breakfast clubs across Britain, systematic research, administered by the Office for and aim to donate 15 million breakfasts by 2016.17 Magic National Statistics, on the reasons for referrals to food Breakfast, a charity dedicated to ensuring that every banks and the underlying reasons behind the growth child gets the right breakfast, has set up clubs in 242 in the use of food banks. This research should allow primary schools in areas with high levels of free school impact assessments on the cumulative effects of the meal eligibility.18 Breakfast clubs are part of the mix in drivers to food banks, such as living costs, low wages, emergency food provision, helping to feed children in insecure work, multiple changes to the social security poverty when their parents cannot afford to.
below the breadline 9 What has happened in the past year As the number of people resorting to food banks continues to grow, so does academic and political interest in the extent of – and reasons for – food aid in the UK. In February 2014, DEFRA finally published the report it commissioned the previous year Household Food Security in the UK. In the midst of much discussion on whether food banks are supply or demand led, this report explicitly states that ‘There is no systematic evidence on the impact of increased supply and hypotheses of its potential effects are not based on robust evidence.’19 In a statement accompanying the report its researchers further stated: ’There is no evidence to support the claim that increased food aid provision is driving demand. All available evidence, both in the UK and internationally, points in the opposite direction. Put simply, there is more need and informal food aid providers are trying to help.’20 The report cites unemployment, delays to social security payments and sanctions as a trigger for the increased use of food banks in the UK. It also found that a combination of shrinking incomes, low pay, rising food prices and increasing personal debt meant an increasing number of households could not afford to There is no buy enough food. In late 2013 Barnardos reported the results of a nationwide online survey and in-depth interviews with 118 of their own services to find out the evidence to extent of food poverty. The report found that 94 percent of services reported that food poverty was an issue for support the claim the families and young people they work with, and 90 percent referred to food banks in the past 12 months.21 that increased In December 2013, the Scottish government published food aid ‘An Overview of Food Aid Provision in Scotland’ in response to growing concern about increased food provision is bank provision.22 The report found that the fast growth experienced by the Trussell Trust recently was broadly indicative of the growth observed by other driving demand. food parcel providers. The report also concluded that the Trussell Trust data on the reasons for referral ‘are largely representative of what has been happening nationally for other food parcel providers’ and that ‘providers who participated in the study were in agreement that welfare reform, benefit delays, benefit sanctions and falling incomes have been the main factors driving...increased demand.’
10 below the breadline Also in December 2013, following on from a high What is driving people to use profile media campaign in the Mirror newspaper food banks? fronted by campaigner Jack Monroe, a petition calling for a debate on food poverty in parliament gained Living costs over 130,000 signatures. The heated debate was held with significant representation from all political parties. ‘People who are using food banks are not scroungers It was clear from all sides of the chamber that MPs who are cynically trying to work the system. They are seeing people experiencing food poverty in their are drawn from the six million working poor in this surgeries and constituencies and are increasingly country, people who are struggling to make ends concerned about it. meet in low-paid or bitty employment.’ Revd Rowan Williams, former Archbishop of Canterbury and Faith leaders have also spoken out strongly on the patron of Cambridge City Foodbank issue of food poverty and hunger. In February 2014, more than 43 Anglican Bishops and non-conformist Rising living costs have placed a strain on incomes since the recession, greatly reducing the purchasing church leaders signed an open letter calling for urgent power of many households, particularly those at the action to ‘End Hunger Fast.’ lower end of the income scale. Purchasing power ‘We must, as a society, face up to the fact that over half of in earnings today are lower than they were 2007, people using food banks have been put in that situation meaning people on low incomes have less money per by cut backs to and failures in the benefit system, month to meet ever-rising costs. Some 40 percent of whether it be payment delays or punitive sanctions. low-income households report being faced with the There is an acute moral imperative to act. Hundreds of ‘heat or eat’ dilemma, while 20 percent of parents with thousands of people are doing so already, as they set children regularly say that they go without food to up and support food banks across the UK. But this is a ensure that their children have enough to eat.25 national crisis, and one we must rise to.’23 A combination of factors is stretching household budgets A second letter addressed to the three main party to breaking point: rising food prices, high housing leaders in April was signed by more than 30 bishops costs, increasing energy bills, low wages and insecure and more than 600 other church leaders. contracts. In many cases, this is leading to insufficient money to afford food. As a result of the increased level of interest in the issues, Frank Field MP and Laura Sandys MP set up the All Party Parliamentary Group on Hunger and Food costs: spending more, Food Poverty with broad political representation. In buying less April 2014 they formally launched an inquiry into food ‘We don’t get to eat real food like fruit and vegetables. poverty, co-chaired by the Bishop of Truro, which is The Healthy Start vouchers are good but they don’t due to report at the end of 2014. go very far. We only have proper food once a month In addition, the Scottish Parliament’s Welfare Reform now.’ Tracy, mother of one daughter, helped by Tower Committee has examined the rise in food bank use Hamlets Foodbank in Scotland and concluded that the UK government’s UK food prices have increased by 43.5 percent over welfare reforms are a ‘significant cause’. In its report, the eight years to July 2013, with rises ranging from released in June 2014, the Committee says it is 24 percent to 55 percent. DEFRA publishes an annual ‘convinced by the volume and strength of the evidence’ report on family food. The most recent report, for 2012, that there is ‘a direct correlation’ between welfare reform found that the average weekly food budget is £41.37 and the increase in use of food banks..24 The Committee per person, an increase of 3.6 percent on 2011. On calls on the UK government to acknowledge this link average, 11.6 percent of household spending goes on and ‘recognise that welfare reforms are contributing to food, rising to 16.6 percent for families in the lowest- demand for food aid’. The report described food banks earning 20 percent.26 The amount of food eaten has as a ‘sign of a Dickensian model of welfare which should been in steady decline. However, food expenditure have no place in a prosperous nation’ with MSPs voicing as a proportion of total household expenditure has particular concern about the impact of sanctions. As well continued to rise. Households purchased 4.7 percent as welfare reform, the Committee points to the economic less food while spending 17 percent more in 2012 than downturn and increases in food and fuel prices as in 2007. This is exacerbated further for the poorest contributory factors to the rise in food bank use. The households. Those in the bottom income decile spent report added that food banks should not be ‘welded into 22 percent more on food in 2012 than in 2007 and the infrastructure of the welfare state’. bought 5.7 percent less.
below the breadline 11 Recent research has found that many people ‘You’re going (to) a million different supermarkets to experiencing food poverty now buy cheaper, lower try and get the best prices. It’s difficult. As if you don’t quality food and spend less on fruit, vegetables, meat have enough stress on your hands without going from and fish.27 However, this strategy has not helped lower- supermarket to supermarket … You really, really, have income households who could not trade down, as to watch your budget or else you have to go without they were already buying the cheapest products. The something somewhere else … The supermarkets are lowest-income households (the bottom 10 percent) doubling prices on everything and it’s always on the simply had to buy less food.28 value ranges … Tuna used to be 30p in the Tesco value range and it’s now 89p!’ Mary, single mother to four The incidence of people buying less food but children, helped by East Bristol Foodbank spending more is leading to a growing number of cases of malnutrition, particularly among children. This has prompted 170 public health professionals Housing to warn of a public health emergency that could go The UK has one of the highest levels of housing costs unrecognised until it is too late.29 In May 2014, they in Europe, with people spending an average of 40 wrote an open letter to David Cameron expressing percent of their income on rent or a mortgage.31 Lack of their concern at the situation, calling it a ‘public health housing supply has driven up the cost of buying a home, crisis’ and calling on the government to take bold and historically low levels of house building have also action and create ‘equitable food policy ... central to applied in the social housing sector, with the result that the global fight against undernutrition, malnutrition, 1.8 million families are waiting for social housing. While and non-communicable diseases.’30 these families wait for social housing, they are renting privately. In the UK, 4 million households now rent their ‘I have lost a lot of weight. My survival tactic is hot homes from private landlords. lemon and water and sugar because it breaks the wind down and stops the hunger pangs. Sometimes Housing costs have risen sharply, especially for I feel so sick. When I get paid I can eat for the first renters in the private sector, with rents increasing by two weeks. I cook from scratch a lot. I eat chicken 67 percent between 2002/03 and 2011/12. Renting and rice, spaghetti bolognese, I eat tins of sardines, costs are rising by twice the level of incomes, to the frozen mixed veg and stuff, Iceland pizza. And point where average rents are unaffordable in almost then I’m out of money, then I go to my neighbour.’ half of English local authority areas. In London, the Patricia, East London, helped by Tower Hamlets pressure from housing costs is more severe, with Foodbank weekly rents at more than 50 percent of average local wages in 17 boroughs across London.32 In 17 boroughs across London the average weekly rent is more than 50 percent of the average income
12 below the breadline Case study Michael finds that he often does not have enough income to cover his rent and bills, particularly his electricity bill. In times of crisis he cuts back his spending as much as possible, and copes by borrowing money or going to the food bank. ‘This is where the food banks have to come in. I’ve got one bag of chips and two loaves of bread and that’s me ‘til next Wednesday [six days away]. I’m now up to my limit with food bank vouchers as you can only get four.’ Michael is an ex-soldier and feels there is a stigma when he uses the food bank. ‘I don’t think it’s ever going to change, how ex-soldiers are treated, I feel let down.’ A recent survey by YouGov and Shelter found that Energy nearly four million families were only one pay cheque away from losing their homes, and that 2.4 million ‘I’m dreading winter … what I do is buy the thick fleecy pyjamas and when the kids come home, I families would lose their home immediately if they lost say “Hey let’s have fun, let’s get in our PJs!” but it’s their jobs tomorrow.33 Shelter identifies high housing really so I don’t have to have the heating on. It’s costs and stagnating wages as the causes of this quite bad.’ Mary, Bristol situation, with people living from month to month with no money left over to save. Between 2010 and the end of 2013, energy prices for This analysis supports the evidence from food banks: household gas and electricity rose by 37 percent, with that people have nothing to fall back on, so when they the Citizens Advice Bureau warning that prices have are hit with an unexpected cost – their rent going up, risen eight times faster than average earnings. This is their boiler breaking – they have no choice but to use an increase of three times the rate of inflation.34 Average a food bank. household energy bills are now £1,152 a year according to the Department for Energy and Climate Change,35 ‘The neighbours were always in the hallway although household usage has declined since 2002 smoking drugs and letting their dogs foul. We had by 17 percent.36 This is in the context of increasing to sleep in the lounge with the door closed. But profits in the energy sector. In 2013, energy companies’ the council refused to move us. My parents gave profits rose 77 percent, despite increases to residential me their savings so I could put a deposit down on customer bills.37 a private rented property near them but the rent ‘It was March and April time and when my meters doubled. I was getting into debt; we were barely run over I had no electricity. No lights, no cooker, no getting by. But when my daughter got ill I had to heat. I’d just take myself up to my bedroom and just stop working and I couldn’t keep up with the rent. wrap myself up in my bed.’ Melissa, Manchester We came back from the hospital with no money and no food. That’s when I went in search of a food Where households can, they have reduced their costs bank. Even if I worked full time I wouldn’t be able on food and on energy. However, despite this, costs to pay my rent and live. We have to raise wages, have increased, meaning that households have less lower rent, do something so that people can afford income, and fewer options available to them to help to live.’ Holly, single mother to one child, helped by meet those costs. For some, this forces them to use food Chichester Food Bank banks as a last resort.
below the breadline 13 energy prices have risen eight times faster than average earnings* *New calculations from Citizens Advice Bureau find that the big six suppliers have increased their prices by a total of 37% since October 2010. Average earnings have only risen by 4.4% during the same period. Low wages The National Minimum Wage is due to be increased ‘I ended up at the food bank because all my debts in October 2014 to £6.50 an hour for people over 21, a got on top of me, and I couldn’t find any way out. rise of three percent.40 This is the first real cash rise My wages were so low, and there was no overtime. for the national minimum wage since 2008. However, I had Thames Water knocking on my door, debt since previous increases were significantly below collectors knocking on my door. And I’m showing inflation, those on low wages have actually seen the them my wage slip saying ‘How can you expect real cash value of wages decrease since the start of me to pay you every week when you can see what the recession. The National Minimum Wage is still a I’m paid a month. I have no other form of income long way from covering the cost of living, even when coming in.’ Patricia, East London social security payments are taken into account.41 This has meant that many more people who are in work UK average weekly earnings fell in real terms in the have to rely on social security to top up those wages. year to February 2013. While wages only increased In effect, the social security system is subsidising by one percent, annual inflation (as measured by companies who pay their workers low wages. the Consumer Prices Index) was 2.8 percent in the twelve months to February 2013.38 This means that The Living Wage is calculated as the minimum amount households have less money to meet ever rising costs. of money that someone needs to earn to live, and is The Trussell Trust is now seeing an increasing number calculated annually. It is currently at £7.65 an hour, of people in work who rely on their food banks.39 and £8.80 in London.42 The Living Wage Commission
14 below the breadline estimates that 21 percent of the UK workforce is paid Insecure contracts less than a Living Wage; that is, 5.8 million people. It has been estimated that by increasing the National ‘Agencies are the only people hiring round here and Minimum Wage to a Living Wage some 4.8 million many only offer zero hours.You can work full time workers would see an extra £4bn in take home pay. one week and be idle the next.You can’t plan or At the same time, the Exchequer would benefit from budget or keep a family on that basis. I was losing a reduction of £1.11bn in social security payments43 money with all the days not working and quit and and a gain of £3.23bn in increased tax receipts and then had my Jobseekers docked for leaving a job.’ National Insurance contributions. The Living Wage Lee, Rhondda Foundation and ShareAction have found that only six of The most recent figures from the DWP show that the the FTSE 100 companies pay their staff a Living Wage, number of people out of work has fallen to 2.2 million and 13 are working towards accreditation.44 (March 2014),45 with a significant boost to the figures coming from an increase in the number of people taking up self-employment. However, employment figures mask the fact that while the numbers of jobs is increasing, many of those are low paid and on insecure contracts with minimal rights for workers. Underemployment is estimated to have increased from 7.1 percent of the UK workforce in 2008 to 10.5 percent in 2012.46 The TUC estimates that almost half of all new jobs created between December 2010 and December 2012 were temporary.47 As well as increasing the in- work poverty rate, the nature of this work is creating a huge ‘churn’ of people in and out of work. Of the 230,000 claims for Jobseeker’s Allowance made by men in the first quarter of 2013, 47 percent were made within six months of a previous claim ending. Of the 88,000 new claims by women, 34 percent were within six months of a previous claim ending.48 This suggests that large numbers of people are unable to sustain long-term employment, as the economy is not creating enough good quality jobs. It has been There are now 1.4 million zero-hours contracts in the active workforce.49 Zero-hours contracts vary in terms estimated that by of how the employer uses them. Employers do not have to provide paid holidays or pensions; rights that increasing the are an integral part of normal contracted jobs. Many employers also add in exclusivity clauses to their zero- National Minimum hours contracts that prevent employees from taking on any other work. In some cases, this even includes Wage to a Living voluntary work. The government is currently undertaking a review of Wage some 4.8 zero-hours contracts, which it is hoped will address some of the concerns with these contracts. Nevertheless, million workers there remain significant employment sectors that utilise zero-hours contracts, for example, social care. A would see an extra sector-by-sector review of their use and impact needs to be undertaken to ensure that people who are in work £4bn in take home are able to earn sufficient income to survive. Checks on the balance of power in zero-hours contracts must pay. be created, and an automatic trigger identified for a permanent contract for average hours worked.
below the breadline 15 The cumulative impact of social security reform Social security changes Housing Benefit and changes to Council Tax Support, around 1.75 million of the poorest families have seen ‘I’m in a two-bed flat. I’ve applied for a one an absolute cut in their income. Of these, 480,000 bedroom (flat) but there just aren’t any there. So families are seeing their social security being cut I have to pay bedroom tax – I’m on discretionary twice, as they are affected by more than one of the housing at the moment which I have to apply for changes.51 every three months. I’ve only got three months until I’ve used up my entire 12 months. Then I’ll ‘A family in destitution, in a country as wealthy as have to start paying £12 a week but I won’t be able this, is a disgrace that should not happen. I think to pay it. It’s a constant worry. I’ve never been on the current welfare system does need reform and anti-depressants before but I am now because of I don’t disagree on the principles with which the the stress from being sanctioned and having no government is working, but it cannot be at the cost money. I need them now to cope.’ Carol, helped of casting people into destitution.’ Cardinal Vincent by Knowsley Foodbank Nichols52 The changes to the social security system which have In April 2014, 780,000 of the poorest families were been brought about through the Welfare Reform Act experiencing a shortfall in their Housing Benefit as 2012 have had significant impacts on low-income a result of the social security reforms since April households, and there is clear evidence that this is 2011. Around 410,000 (52 percent) of these families driving increasing numbers of people to food banks. are private renters affected by the Local Housing Allowance (LHA) changes; 345,000 (44 percent) are The cash value of the majority of social security affected by the under-occupation penalty (commonly payments has been lowered in real terms. At the known as the bedroom tax) and 28,000 (4 percent) same time, entitlement to Housing Benefit has been are affected by the overall cap on social security cut, and Council Tax Support has been reduced (and payments. On average, their Housing Benefit has been localised).50 cut by £10.48 per week. There are 1.4 million families Research undertaken by Oxfam and the New Policy who have to pay on average £154 per year (£2.96 per Institute in April 2014 found that as a result of cuts in week) in council tax, which they didn’t previously have to pay before April 2014.53 Research undertaken by Oxfam and the New Policy Institute in April 2014 found that as a result of cuts in Housing Benefit and changes to council tax support, around 1.75 million of the poorest families have seen an absolute cut in their income.
16 below the breadline SInce April 2014, 1.4 million people have to pay, on average, an extra £154 per year in council tax These changes are having a significant impact on food poverty. The proportion of clients accessing Trussell Case study Trust food banks due to a change in social security sa was reassessed for payments increased from 12 percent in 2011/12 to 18 In March 2013, Melis SA) pport Allowance (E percent in the period April – September 2013. Fifty two Employment and Su s ected. Jobcentre Plu percent of referrals between April and June 2013 were and had her claim rej peal her that she could ap due to problems with social security.54 staff did not inform ply for Jobseekers or that she could ap e Evidence from research commissioned by the Scottish e was without incom Allowance (JSA). Sh he at, government (‘Overview of Food Aid Provision in She had no food, for nearly six weeks. Scotland’) echoes the findings of the Trussell Trust. her neighbours and or light and relied on s: It highlights the top three reasons for referral to casional meal. She say food banks for the oc of da ys, food banks as delays to social security payments, eat for a coup le ‘Sometimes I wouldn’t changes to social security, and low income.55 Social alt h deteriorated … I just drink water. My he en security recipients reported uncertainty about when essential that I eat wh have epilepsy and, it’s ing a they would receive their money and how much they . I ended up develop I take my medication mo ney to would be getting. The bedroom tax charge was also viously I had no kidney infection as ob ) [9.5kg] identified as a driving factor, as were Council Tax of weight (1.5 stone buy food. I lost a lot would Support reduction, the abolition of the Social Fund and a decision to see if I while I was awaiting the increase in social security sanctions. The Scottish e help.’ be allowed to receiv government has recently acted to mitigate the impact eetham Hill Advice After advice from Ch of the bedroom tax and the loss of the Social Fund. aled against her ESA Centre Melissa appe Oxfam, Church Action on Poverty and The Trussell s placed on JSA. She rejection, lost, and wa dical Trust have found that just one change to social security for ESA with a new me payments can seriously affect a family’s ability to then applied again be en A. She has recently report and got her ES cope, but that more than one change, compounded her ESA test, and is reassessed and failed with rising living costs and stagnant wages, greatly e. increases the need for emergency food. again without incom
below the breadline 17 to social security have caused more people to be Case study referred to them for emergency food in the last year. Michael in Durham has recently used Durham Research by Landman Economics for Oxfam shows Food Bank on a few occasions. He was that there appears to be no relationship between the sanctioned twice for four weeks at a time as extent to which sanctions to social security are used in he was ‘not adequately seeking employment’. each Jobcentre Plus district, and improvements in the Michael is aware that there is a lack of jobs in labour market (that is, increases in the employment the north east, which makes it difficult to provide rate, reductions in unemployment, and/or reductions evidence that he is constantly looking for work. in inactivity) by district.57 If there were a correlation, we would expect more of an improvement in the ‘You have a work diary, you get sanctioned if you labour market in districts where sanctions were used don’t bring it in with you, fill it out correctly or more heavily. The fact that this has not occurred do the right amount of job searches. I didn’t do suggests that sanctions are not an effective device for enough job searches. I had to do 22 a fortnight, encouraging employment – their stated policy goal. it’s too many. I live in a remote area seven miles from Durham and it costs me £5.90 return to get to the library to use the internet. How can I pay for that? I only have a pay-as-you-go phone and then just for incoming calls. If I do get a job please tell me how I’m going to get there. I’ve Case study been told by employers, “You’re never going to Carol is 53. She has often worked as a carer be able to do the early shift patterns when you’re doing 12-hour shifts, six days a week, with so far away.” I don’t get as far as interviews.’ long travel either side and with gaps in employment. She has been claiming JSA for about two years. In May 2013 she fell sick, so called the Jobcentre to rearrange Conditionality and sanctions her appointment. They told her that it would be fine. She subsequently went to the There is clear evidence that the social security rearranged interview and all seemed well. sanctions policy is not working as intended, and at the She then received a form from Jobcentre same time is creating severe hardship and hunger for Plus about the missed appointment increasing numbers of people. which she filled in and returned. Then in People in receipt of Jobseekers Allowance (JSA) September 2013, she went to sign on and and Employment Support Allowance (ESA) have to found that she had not received her money. comply with a number of criteria as a condition of When she queried it she was told she had receiving their social security payment, e.g. applying been sanctioned because of the missed for a certain number of jobs each week, attending appointment back in May. She ended up meetings at the Jobcentre and being available for being sanctioned in total for six weeks. work. If a claimant is found not to be complying with She is now on anti-depressants and blood these criteria, sanctions (or penalties) are issued, pressure medication as a direct result of the which can lead to their social security payments being stress she has been put under. She had no withdrawn: four weeks for a first offence, up to 13 money for food or fuel and was referred to weeks for a second offence, up to 26 weeks or three a local food bank. Carol appealed but lost, years for a third offence. as there was no record made of her calling Jobcentre Plus to cancel her appointment Since the new sanctions policy was implemented due to sickness. She provided the name of in October 2012, more than one million sanctions the young woman she had spoken to, but have been applied. Twenty percent of these have they were not able to find her as she no been imposed on people with a disability. Overall, longer worked there. They ruled that as men and young people are being disproportionately Carol could not ‘prove’ her version of events, sanctioned: 71 percent of those sanctioned are male, the sanction would stand. and 56 percent are young people.56 Of the Trussell Trust food banks surveyed in March and April 2014, 83 percent reported that sanctions
18 below the breadline Regardless of the policy intentions, the speed at which it is being brought in, together with poor guidance, a 70,000 jobseekers lack of support and training for Jobcentre Plus staff, combined with redundancies at DWP mean that a have had their significant number of people are being inappropriately sanctioned. Research by Policy Exchange found that social security 70,000 jobseekers have had their social security payments withdrawn unfairly, leading them to rely on payments food banks to feed themselves and their families. Only one-quarter of claimants who are sanctioned ask for withdrawn unfairly reconsideration, yet 58 percent of those are successful in having the sanction withdrawn.58 leading them to Research by Policy Exchange found that 70,000 jobseekers have had their social security payments rely on food banks. withdrawn unfairly, leading them to rely on food banks to feed themselves and their families. The abolition of the Social Fund in April 2013 has There are concerns that in many cases people caused further hardship to low-income households. claiming social security payments do not understand Previously, families and individuals could apply for an interest-free hardship loan that would be paid back the conditions that they are required to fulfil, and are through their social security payments. Designed only made aware that they have been sanctioned after to help people with emergencies, these loans the event (when they subsequently discover that the provide financial assistance to families who suffer social security payment has not been made). In light of sudden financial crisis due to domestic violence, this, we recommend that he current sanctions system homelessness, ill-health or natural disaster. should be urgently reviewed, including Under the Welfare Reform Act 2012, funds were n removal of the right for advisers to arbitrarily devolved to local authorities in England and to the Welsh suspend social security payments pending government to run their own social security assistance investigation. There should be a presumption towards schemes. However, the money available through these eligibility and shorter, fixed consideration times; schemes is often insufficient. Many local authorities n review of the implementation of policies (who is have imposed strict criteria which determine who can sanctioned, why, appeals, why they are successful) to apply. Some schemes do not accept people who have ensure policies are transparent, evenly applied and fair; been sanctioned by the Jobcentre. Others only accept people who have lived in the area for at least six months. n review of the processes for implementing and using A recent report59 found that many English councils had claimant commitments; underspent their hardship budget this year because n addressing the performance of JCP advisers who of strict application criteria. Despite some councils repeatedly incorrectly sanction claimants whose opposing the government changes to social security, sanctions are overturned on appeal. the situation has been exacerbated by the application of strict conditions. Additionally, some are not advertising the funds because they are concerned with Localisation of hardship fund getting too many applications and not having enough ‘When we moved in here we applied for help [from funds across the year. the local hardship fund] with the decorating and The government now plans to scrap the £180 million they refused us completely. I wasn’t even working hardship fund altogether.60 Charities have warned then so I don’t know why they turned us down. that this will lead to a postcode lottery in terms of who After two years we’ve only just managed to gets financial assistance, and will further increase the complete the second room and we still haven’t got number of families turning to food banks or becoming carpets in most of the house. We got a second-hand dependent on loan sharks or payday loans. As councils carpet from a friend for my son and daughter’s do not have a statutory duty to provide local social room but there’s no underlay as we haven’t got the security, some may cut their schemes altogether when money for it. Some of the boards have splinters and the government stops funding them. The scrapping of holes in them.’ Vicky, Moreton, helped by North the scheme will add another hole to the safety net that Cotswold Foodbank once protected families in crisis.
below the breadline 19 Food poverty in the devolved nations Wales The use of food banks in Wales is disproportionately Around 690,000 people (23 percent of the population) high, given the size of its population. The Trussell Trust in Wales live in households below the 60 percent gave out 711,000 meals61 for a population of three low-income threshold after deducting housing costs.64 million, compared with 639,000 in Scotland with a Meanwhile, 25 percent of Welsh workers earn less than population of over five million. the recommended Living Wage of £7.45 per hour.65 Zero-hours working is on the rise, with one-in-five Over the year to 2013/14 the use of Trussell Trust food banks rose 120 percent.62 Rhondda food bank reported employers admitting to operating such contracts. a 40 to 50 percent increase in visitors in the past year, The Welsh government has taken steps to mitigate with the major driver being problems with their social the impact of the UK government’s social security security payments.63 Bridgend food bank, which reforms. This includes maintaining full support for the opened in January 2010, saw a 123 percent increase Council Tax Reduction Scheme following the abolition in the numbers helped in 2013/14 compared with the of Council Tax Benefit and replacing the abolished previous financial year, giving three days’ emergency components of the Social Fund with the Discretionary food to 8,772 people. Assistance Fund. Nia, 22, from northeast Wales, has mental health problems. She failed an Employment Support Fund Medical and had hunger cramps before she was Scotland referred to a foodbank. ‘I was embarrassed going there. The amount of food aid distributed by the Trussell I thought it was for homeless people,’ she says. ‘But when Trust in Scotland has increased dramatically, with over I got there the people were all sorts – young, old, mums 639,000 meals given out by their food banks in the with young kids, people like me.’ 12 months to April 2014, a fivefold increase from the IN THE UK, People are buying less food in 2012 than in 2007 but spending more as a proportion of their household expenditure 2007 2012
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